Pennsylvania faces a $3 billion tax revenue shortfall in the state’s General Fund Budget. Competing proposals from Gov. Ed Rendell and the Republican-led Senate differ on raising taxes and reducing/reprioritizing spending. This is the second in a series of fact sheets on the state budget.
SENATE BILL 850 MAINTAINS ABOVE-INFLATION INCREASES IN SPENDING OVER RENDELL TENURE
- Senate Bill 850 represents a 36.2% increase in spending since he took office in 2003 (a 17.2% increase in inflation-adjusted spending)—despite reducing Gov. Rendell’s proposal by $1.7 billion.
- SB 850 represents an increase in spending over fiscal year 2002-03 by inflation and population growth, plus an additional $2.8 billion.
SENATE BILL 850 INCREASES SPENDING IN K-12 PUBLIC EDUCATION AND PUBLIC WELFARE
- K-12 Public Education and Public Welfare—the two largest budgetary items in the General Fund Budget (representing 80% of all General Fund Budget spending)—would receive increased state and federal funding in FY 2009-10 over the current fiscal year
- K-12 Public Education would receive $360 million more in 2009-10 than in 2008-09—a 37.6% increase in spending since 2003 (18.5% in inflation-adjusted spending).
- Public Welfare would receive $504 million more in 2009-10 than in 2008-09—a 62.6% increase in spending since 2003 (39.9% in inflation-adjusted spending).
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Additional Resources
- General Fund Spending Chart
- Testimony: Now is the Time to Practice Fiscal Restraint
- Government on a Diet: Spending Tips 2009
- Will Tourism Collapse Without Taxpayer Subsidies?
- State Spending Binges
More Budget Facts
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